TEHRAN, April 8 -- A ceasefire between the United States and Iran appeared to be holding Wednesday after the rivals agreed a two-week truce to the war that has killed thousands and hammered the global economy.

Both sides claimed victory as the truce was announced barely an hour before President Donald Trump's deadline to agree a deal or face obliteration, but Tehran warned the war was not over until formal terms were negotiated.

Tehran has agreed to temporarily reopen the Strait of Hormuz, sending oil prices tumbling on Wednesday, but its demands over future control of the vital waterway, uranium enrichment and sanctions, are at deep odds with the United States.

The ceasefire was cautiously welcomed by Gulf nations, which have been pum...